Consider the following items of a given project. Item ...

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Accounting

Consider the following items of a given project.

Item

Unit

Quantity

Material Cost

Labor Cost

Equipment Cost

Sub-Contractor

1

m3

150

10,000

11,000

4,000

0

2

m2

180

10,800

10,200

4,000

0

3

m3

40

10,600

400

3,000

0

4

m2

60

10,200

10,000

4,800

0

5

L.S.

Job

0

0

0

8,000

If the Recapulation Factor is equal to 1.4, it is required to:

a) Develop a balanced tender price.

b) Develop an un-balanced tender price (Early income-Front loading).

c) If you know that the quantity of the item No. 3 may be increased to 50 m3, while the quantity of the item No. 4 may be decreased to 40 m3. How to make another unbalance bid to consider best advantages of this situation?

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